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Russian government is studying measures to stimulate the automotive components industry

Jan 13, 2020

The government has approved a plan on the development strategy of the automotive supplier industry until 2025, which proposes the formulation of a number of tax exemptions and financial incentives for the localisation of the production of automotive components in Russia in 2020. The approved plan has been published on the website of the government.


“The plan for the implementation of the strategy on the development of the automotive industry until 2025 has been approved by the government. Creation of mechanisms to stimulate R&D operations, development of the production of car components in Russia, usage of components locally produced by Russian manufacturers and the integration of Russian component suppliers to the global network are within the aforementioned plan in particular” – according to the government statement.

The plan particularly concentrates on the expansion of government subsidies on transportation to the auto components sub-industry. The list of eligible enterprises includes the ones implementing Corporate Competitiveness Improvement Programmes, which are proposed to be introduced to the automotive industry.

In addition, proposals will be prepared for the provision of tax incentives for R&D investments, regarding the development of technologies for the production of automotive components, by the ministries of Finance, Education and Science, Industry and Commerce and Economic Development. Departments will also study possible changes to the Tax Code to introduce a reduced VAT rate for the sale of car components.

The Ministry of Industry and Commerce will prepare a report on the possibility of concluding SPIC with organisations, developing technologies for the production of automotive components and engaged in their serial production.


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